Listing agent holding out offers so he can get double commission (contingency, appraisal)
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Hi all! Hoping for a little insight here. My wife and I found a home to buy on the very first day it was listed for sale. We put in a full price offer to the lisint agent. Our agent called the listing agent and the listing agent specified exactly the terms they wanted to see to get a deal done. We gave them everything they wanted. A full price offer, approval letter from our mortgage broker, and all the terms they wanted. We sent the offer over to the listing agent who said that he needed 2 days to review and get the seller to sign off on the offer (he says the seller was traveling and could not present the offer to her right away). We gave him the two days and on the day after we put in our offer he said he had another offer. We asked the agent if a higher offer or any other terms could help our offer. He specifically said NO, your offer is perfect the way it is and to please not provide another offer, especially one with a higher offer price (a little odd). It sounded like our offer was still the best offer. Well, today, the second day after we provided our offer, the listing agent now tells us that a neighbor may be interested in the property and that he is going to represent that buyer and that buyer will likely write up an offer tonight (after our two day deadline to accept/reject our offer).
It now sounds like although he had received an offer for the house with ALL the terms and price he wanted, he NEVER presented our offer to the seller. In the meantime he has found another buyer who he can represent (dual agency, and get DUAL commission). He also told my agent that if HIS buyer gets the deal, then he will be listing their house for sale as well and would be happy to give US 'a private showing' before it was listed for sale. It is PLAINLY clear that the agent is not presenting our offer despite us writing up an offer exactly how he wanted it. In turn, he is going to present HIS buyers offer to HIS seller to get dual commission and then get another listing as well. This seems QUITE unethical to say the least.
On another note, he has told us to not write up a HIGHER offer because he was concerned that the home would not appraise for higher. That sounded good two days ago, but now with him working with another buyer to get dual commission, it makes it sound like he is playing both sides. He will tell his seller he is going to get full asking price, but at the same time he will keep the price down to get the best deal for the buyer. If we came in with a higher offer, then his buyer would also have to come in with more money.
Does this seem highly unethical on so many fronts to anyone? Is there anything we can do? Is this something the Department of Real Estate would look at if a complaint was filed. HELP!
Hi all! Hoping for a little insight here. My wife and I found a home to buy on the very first day it was listed for sale. We put in a full price offer to the lisint agent. Our agent called the listing agent and the listing agent specified exactly the terms they wanted to see to get a deal done. We gave them everything they wanted. A full price offer, approval letter from our mortgage broker, and all the terms they wanted. We sent the offer over to the listing agent who said that he needed 2 days to review and get the seller to sign off on the offer (he says the seller was traveling and could not present the offer to her right away). We gave him the two days and on the day after we put in our offer he said he had another offer. We asked the agent if a higher offer or any other terms could help our offer. He specifically said NO, your offer is perfect the way it is and to please not provide another offer, especially one with a higher offer price (a little odd). It sounded like our offer was still the best offer. Well, today, the second day after we provided our offer, the listing agent now tells us that a neighbor may be interested in the property and that he is going to represent that buyer and that buyer will likely write up an offer tonight (after our two day deadline to accept/reject our offer).
It now sounds like although he had received an offer for the house with ALL the terms and price he wanted, he NEVER presented our offer to the seller. In the meantime he has found another buyer who he can represent (dual agency, and get DUAL commission). He also told my agent that if HIS buyer gets the deal, then he will be listing their house for sale as well and would be happy to give US 'a private showing' before it was listed for sale. It is PLAINLY clear that the agent is not presenting our offer despite us writing up an offer exactly how he wanted it. In turn, he is going to present HIS buyers offer to HIS seller to get dual commission and then get another listing as well. This seems QUITE unethical to say the least.
On another note, he has told us to not write up a HIGHER offer because he was concerned that the home would not appraise for higher. That sounded good two days ago, but now with him working with another buyer to get dual commission, it makes it sound like he is playing both sides. He will tell his seller he is going to get full asking price, but at the same time he will keep the price down to get the best deal for the buyer. If we came in with a higher offer, then his buyer would also have to come in with more money.
Does this seem highly unethical on so many fronts to anyone? Is there anything we can do? Is this something the Department of Real Estate would look at if a complaint was filed. HELP!
If you do not feel that the listing agent has presented the offer to the seller then your agent should be taking action. If you do not feel your agent is taking action then go knock on the seller's door and ask if they were aware an offer had been made. If the seller is not aware of your offer then I would report both the listing agent and your agent to the DER for failure to performing their jobs!
It is unethical for your agent to approach the seller directly so I wouldn't fault your agent at this point. Based on your description, you don't know that the listing agent hasn't or won't present your offer--you just fear it. Your agent could try asking for a signed acknowledgement from the seller that the offer was presented. If you have the cash and you want the house, raise your offer and pay the difference in cash. The appraisal shouldn't be a problem then, I would think. We don't have dual agency in Florida. Maybe another agent can comment on the correct way of handling multiple offers in your state.
Hi all! Hoping for a little insight here. My wife and I found a home to buy on the very first day it was listed for sale. We put in a full price offer to the lisint agent. Our agent called the listing agent and the listing agent specified exactly the terms they wanted to see to get a deal done. We gave them everything they wanted. A full price offer, approval letter from our mortgage broker, and all the terms they wanted. We sent the offer over to the listing agent who said that he needed 2 days to review and get the seller to sign off on the offer (he says the seller was traveling and could not present the offer to her right away). We gave him the two days and on the day after we put in our offer he said he had another offer. We asked the agent if a higher offer or any other terms could help our offer. He specifically said NO, your offer is perfect the way it is and to please not provide another offer, especially one with a higher offer price (a little odd). It sounded like our offer was still the best offer. Well, today, the second day after we provided our offer, the listing agent now tells us that a neighbor may be interested in the property and that he is going to represent that buyer and that buyer will likely write up an offer tonight (after our two day deadline to accept/reject our offer).
It now sounds like although he had received an offer for the house with ALL the terms and price he wanted, he NEVER presented our offer to the seller. In the meantime he has found another buyer who he can represent (dual agency, and get DUAL commission). He also told my agent that if HIS buyer gets the deal, then he will be listing their house for sale as well and would be happy to give US 'a private showing' before it was listed for sale. It is PLAINLY clear that the agent is not presenting our offer despite us writing up an offer exactly how he wanted it. In turn, he is going to present HIS buyers offer to HIS seller to get dual commission and then get another listing as well. This seems QUITE unethical to say the least.
On another note, he has told us to not write up a HIGHER offer because he was concerned that the home would not appraise for higher. That sounded good two days ago, but now with him working with another buyer to get dual commission, it makes it sound like he is playing both sides. He will tell his seller he is going to get full asking price, but at the same time he will keep the price down to get the best deal for the buyer. If we came in with a higher offer, then his buyer would also have to come in with more money.
Does this seem highly unethical on so many fronts to anyone? Is there anything we can do? Is this something the Department of Real Estate would look at if a complaint was filed. HELP!
Definitely sounds like the listing agent is playing games, to your detriment. What is your agent doing to be sure your offer has been presented?
If it were me, I'd absolutely let the oter agents broker know what is going on, and I'd put in a call to the SELLER directly, just to be sure that sellerr is aware that yorur offer was written on day one, and making sure he's seen it.
If the situation is as described, I have to say that the listing agent telling you NOT to increase the amount of your offer is ringing all sorts of bells for me, as does the offer to give you a private showing after HIS buyer gets the house you want and lists theirs with him. It's his job to get the best deal for his client, and it's possible that you could come up with the extra cash if the house doesn't appraise. That, combined with an offer coming in after yours in which he represents the buyer, doesn't sound right.
You could go to the seller directly and ask them if they know that you submitted an offer the first day. If so, you could go to the listing agent's broker and/or the licensing agency for your state.
Here, unless instructed in writing by the seller otherwise, all offers are to be submitted as quickly as possible after they are received. The listing agent doesn't get to pick and choose which ones will be submitted and when.
I'd say more investigation by your agent is appropriate, and if your agent will not do it, speak to their broker.
Thanks everyone. Unfortunately our agent does not want to ruffle his feathers by demanding a signed receipt of the offer. The listing agent is definitely playing games to assure HE gets the best deal for himself, rather than the seller.
My wife and I discussed this situation with another agent last night and we have agreed to utilize a new agent for ourselves, offer slightly more money, a larger deposit, more money down and waive the appraisal contingency. Will see how this all plays out today as we know the listing agent will present HIS buyers offer to the seller today. We just want to make sure we have the best offer and we know he will not have his new buyer come in with a higher offer. So, if we somehow lose out on this property, then we know the listing agent is a crook (which I have heard from other agents, this guy is not very ethical, obviously). Still, if we do not get the deal, then are there ways to file a grievance, complaint or lawsuit against the listing agent?
On another note, he has told us to not write up a HIGHER offer because he was concerned that the home would not appraise for higher. That sounded good two days ago, but now with him working with another buyer to get dual commission, it makes it sound like he is playing both sides. He will tell his seller he is going to get full asking price, but at the same time he will keep the price down to get the best deal for the buyer. If we came in with a higher offer, then his buyer would also have to come in with more money.
This is the only unethical thing I see in your post.
You have no way of knowing whether or not he has presented your offer. It is his job to get the best net for his seller, so if the neighbor is going to write up an offer equivalent to yours, but the seller will pay out less total commission, that will net the seller better (might have been going to pay the LA 3%, and the SA 3%, but him as a DA only 5% total, thus saving the seller 1%). So he very possibly DID present your offer but coached them to hold off responding because he could get them a better net offer.
So you have no evidence that anything hinky is going on on that front. However, telling you NOT to up your offer is acting against that same idea. His job is to get the best deal for his seller. By telling you not to up your offer, he is not doing that. I would up your offer anyway, and send it in. By law, he has to present that to them. However, there is no law that a seller must take the highest offer. They can choose whichever offer they want as long as they do not discriminate based on any protected class.
Your agent cannot call the seller directly, since that is interfering in a contractural relationship, and is unethical. However, YOU could call the seller if you wanted to, to make sure they had seen your offer, if you really think that is a factor here.
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